Company Briefs: Keppel DC Reit

Keppel DC Reit

The manager of Keppel DC Reit has acquired the shell and core building of a data centre in Cardiff, Wales, for £34 million (S$59 million). It comprises a two-storey data centre connected to a three-storey office block.

The data centre, which it bought from Cardiff Data Investments, is fully leased to a large global cloud service provider on a 15-year triple net lease - meaning the tenant is responsible for all costs relating to the asset being leased - from June 2016. Annual rental escalations have been built into the lease as well. Under the lease structure, the client manages the facility and bears operating expenses and capital expenditure of the data centre.

Post-acquisition, the portfolio weighted average lease expiry will improve from 8.7 years to 9.5 years.

The acquisition is fully funded by sterling-denominated debt.

The Reit's aggregate leverage has risen from 29.1 per cent to about 32.5 per cent following the transaction.


Frasers Property Australia

Frasers Centrepoint's Australian unit, formerly Australand, is acquiring a 15.19ha site in Sydney, in the well-established inner-west industrial area of Chullora, it said yesterday.

The company also recently acquired an additional 45.72 ha of land in Sydney and Melbourne to further expand its national industrial footprint.

The Chullora site comprises a 6ha parcel of land available for immediate development and an investment component on the adjoining 9.19ha parcel that will be subject to a 20-year triple net lease to Suez Recycling & Recovery.

The development on the Chullora site will have an estimated end value of $55 million.


SATS

A joint-venture company between Air India and SATS has started trial operations at India's first integrated on-airport perishable cargo-handling centre at the Kempegowda International Airport in Bangalore.

The 11,000 sq m facility by Air India Sats Airport Services (Aisats) will meet the rising demands and handling requirements of temperature-sensitive cargo, and enhance Karnataka state's status as the pharmaceutical and perishables hub of India, the firms said.

Aisats Coolport, as it is called, has a handling capacity of 40,000 tonnes per annum and is expected to be inaugurated by year end.

A version of this article appeared in the print edition of The Straits Times on October 07, 2016, with the headline 'Company Briefs'. Print Edition | Subscribe